Would Credit card transfer count as income?

Debbie_Hobdell

I have been offered the chance to transfer some money from my credit card into my current account, at 0% for 9 months.

If I did that, my plan would be to use one of Martin's tips, ie put the money into my high-interest savings account and repay it in full at the end of the interest-free period.

I'm concerned, though, that this would be treated as income by the Inland Revenue, and may possibly affect my husbands' ability to get certain benefits. Obviously I would have the credit card statement to prove where the money came from. I know I wouldn't get a vast amount of interest on it, but every little helps - as long as it won't jeopordise any claims we have, eg tax credits.

Any thoughts or advice re this course of action would be appreciated!

Thanks,
Mary Poppins

Fran

Mary Poppins,

If you take the details of your income, savings etc. to your local Citizens Advice Bureau, they will be able to run through the different benefits with you and do a calculation to see how any income would affect benefits your husband receives.

Debbie_Hobdell

Thanks, Fran.

I was thinking of doing that, but can't get there for a couple of weeks & was getting impatient!

But could an CC transfer actually count as income anyway?! I would say not, but then I'm not the person who sets the rules!

Fran

But could an CC transfer actually count as income anyway?! I would say not, but then I'm not the person who sets the rules!

The interest would be income.

Debbie_Hobdell

Thanks for your help, Paul & Fran.

I guessed the interest would come under income, which is fair enough. I must admit I hadn't considered the mortgage option - I'll give that some serious thought!

real1314

The interest would be income for Tax purposes (and would be paid after tax anyway), however for benefit purposes it would not be treated as income, as means tested benefits use the "tariff income" method to calculate income from capital.


Oops. Just realised how old this is!!

What's it doing up at the top????

Ross01

It will definately count as savings not income. While it is in your cuirrent account it will go towards your savings threshold.